US open: Stocks struggle for direction as investors await Fed speakers

US stocks struggled for direction early on Monday, amid thin trading on Columbus Day.

Shortly before 1500 BST, the Dow Jones Industrial Average was down 3 points to 17,081.32, while the S&P 500 and the Nasdaq were up one and 11 points respectively.

US stocks looked to be buoyed by a rally in Chinese equity markets, driven by the People’s Bank of China’s pledge to introduce fresh stimulus measures to boost the country’s economy.

Over the weekend, China’s central bank announced it would expand a pilot programme aimed at increasing banks' lending abilities by allowing them to pledge a number of assets to borrow from the central bank.

Fed speakers

With no major economic reports scheduled for Monday as the US celebrates Columbus Day, investors will analyse a number of speeches from key members of the Federal Open Market Committee.

Chicago Fed President Charles Evans, who last week said he favoured a “somewhat later lift-off” will speak in Chicago at 1530 BST, with Fed governor Lael Brainard delivering a speech on policy and outlook in Washington at 2130 BST.

“US markets continue to be fascinated by the Fed’s ongoing public discussion over the wisdom of rate rises, but the general opinion appears to be that 2015 is now a very slim possibility,” said IG’s senior market analyst Chris Beauchamp.

In company news, EMC rose 2.58%after the data-storage company agreed to be acquired by Michael Dell and partners in a cash-and-stock deal valued at $67bn

Ford Motor slid 0.40% after revealing it plans to invest $1.8bn in China over the next three years, while Eli Lilly tumbled 7.50% after the drug manufacturer reported termination of a drug trial.

The earnings season continues with Stanley Furniture and AmeriServ Financial both set to report on Monday.

Elsewhere, European stocks slid, while oil prices edged slightly lower, with West Texas Intermediate losing 0.30% and Brent crude shedding 0.23%.

The dollar was broadly flat against the euro and the yen but lost 0.23% against the pound, while gold futures rose 0.82% to $1,166.06.